OS-Climate seeks collaboration for climate risk data tools

Linux Foundation’s OS-Climate, a non-profit organisation providing open source data and software tools to enable the global shift to climate-aligned finance and investing, has today released for public collaboration three analytic tools critical to tackling the climate crisis.

The three tools – Physical Risk & Resilience, Portfolio Alignment and Transition Analysis – were developed cooperatively by OS-Climate members, led by BNP Paribas, Allianz and Airbus, respectively.

With today’s announcement, OS-Climate’s tool development moves into its next phase which, enabled by cloud services contributed by Amazon and Microsoft, will open the door to institutions, government agencies and other interested parties for further collaboration in building out the tools and Data Commons, a library of data and metadata suitable for use with OS-Climate’s toolset.

In addition to Airbus, Allianz, and BNP Paribas, OS-Climate’s financial services sector, technology sector, financial data and ‘real economy’ corporate members include: Amazon, BNY Mellon, EY, Federated Hermes, Goldman Sachs, London Stock Exchange Group, Microsoft, the UN-convened Net-Zero Asset Owner Alliance, Ortec Finance, Red Hat, and S&P Global.

Truman Semans, chief executive officer of OS-Climate, said: “These tools will generate the refined data and actionable insights needed for pension funds, asset managers, and banks to rapidly align their investments and loans to net zero and resilience goals. They can be used not only by the leading members within the Glasgow Financial Alliance for Net Zero (GFANZ) but the rest of the global financial community.”

The tools

BNP Paribas is leading the development of the Physical Risk & Resilience Tool that enables financial and non-financial stakeholders to identify and quantify risk related to climate resilience, through asset vulnerability models that use probability and severity forecasting of extreme climate events.

Allianz, with support from Ortec Finance, is leading the development of the Climate Portfolio Alignment Tool, which helps financial stakeholders to align portfolios at individual holdings and loan levels with the Paris Accord target temperature increase of 1.5°C.

The Transitional Analysis Tool developed by Airbus will enable corporations to model, test and conduct scenario analysis for strategic climate-aligned decisions.

This is the key to enabling the large-scale transition of real economy corporations toward net zero and resilience through climate-aligned investments in R&D, capital projects, other infrastructure and supply chains.

The tools will use the OS-Climate Data Commons, led by Red Hat, which will act as a public utility of corporate and other climate data and has enabled OS-Climate to significantly progress its technical roadmap announced at COP26.

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